Tax Tribunal overturns Tax Department in €1.26m VAT case

Press Release 10:21 - 04 June 2024

Companies Reporter

In a landmark decision, the Tax Tribunal recently overturned a decision by the Tax Commissioner to impose Value Added Tax (VAT) of €1,261,344 on land developers, Antonis Askanis Ltd, for the sale of a property in Limassol.

In a unanimous decision dated 18 April 2024, the Tax Tribunal ruled that “first occupation” as provided for in the VAT Legislation had already taken place for the villa in question at the time of the sale and therefore the sale was exempt from VAT.

The Tax Tribunal based its decision on the arguments presented by Antonis Askanis’ team of VAT experts, made up of the Managing Director of Chelco VAT Ltd, Alexis Tsielepis, VAT Advisory Officer of Chelco VAT Ltd, Marios Nikolaidis, Partner with Patrikios Pavlou & Associates LLC, Angelos Onisiforou and the Director of the applicant, Christiana Askani.

Led by Tsielepis, the team of tax advisors argued that the rental of the villa for a total period of 38 days, that took place before the sale, as well as its use as a “showhouse” for approximately 12 months, fall within the scope of the term “first occupation” of the VAT Legislation, meaning that any subsequent resale would be exempt from VAT.

The Tax Tribunal agreed with this position, stating that the legal background set by the legislator in relation to the interpretation of the term is fully satisfied and therefore the position of the Tax Department to impose VAT on the sale, as a sale before “first occupation,” was incorrect and was consequently annulled.

Tax Tribunal overturns Tax Department in €1.26m VAT case

News Feed

Read More